Jeffrey Saut is market strategist for sell-side firm Raymond James. In his weekly essay, published today, he recommends two Malasia funds - an ETF and a closed-end fund. Here's the relevant quote:
Lost in the week’s “Chinese Commotion�? was the fact that Malaysia also de-pegged its currency (the Ringgit). On that news, the Ringgit gained a mere 0.45%, or only 21% of what the Chinese yuan did on its de-pegging announcement. We think the Ringgit will continue to strengthen because, in our opinion, it is very much undervalued. Further, Malaysia’s financials are better than China’s, inflation is low and the country is a net-exporter of commodities (oil, gas, timber, tin, rubber, palm oil, etc.). Additionally, its government is a constitutional monarchy and its legal system is based on English common law. With an educated work force Malaysia has also become a large exporter of electronics; and, was therefore hard hit by the worldwide technology downturn. Beginning in 2003, however, GDP rebounded to +4.9%; and, last year its GDP grew by over 7%. We think Malaysia is a BUY and are subsequently using the Malaysian Fund (MF/$6.30), as well as the 2%+ yielding iShare Malaysian Index (EWM/$7.56).
Full article here.